Note 12 – Subsequent Events

The Company has analyzed its operations subsequent to December 31, 2018 and noted the following subsequent events:

On January 1, 2019, the number of shares of common stock available for issuance under the 2016 Plan increased by 1,286,409 shares (see Note 9).

On January 2, 2019, the Company issued a warrant to purchase 25,000 shares of the Company’s common stock with an exercise price of $10.00 per share and an exercise period of 24 months in connection with an agreement entered into on July 2, 2018 (see Note 9).

On January 31, 2019, the Company issued 416 shares of its common stock upon the exercise of 416 employee options at an exercise price of $3.78 per share. In connection with the exercise, the Company received $2 in proceeds.

On February 6, 2019, the Company issued a warrant to purchase 10,000 shares of the Company’s common stock with an exercise price of $7.25 per share and an exercise period of five years in connection with an agreement entered into on June 6, 2018 (see Note 9).

On February 13, 2019, the Company’s Compensation Committee approved the issuance of a 165,000 restricted stock unit award in accordance with the CEO’s employment agreement which vests over a four-year period on a quarterly basis beginning October 1, 2018. On March 5, 2019, the Company issued 10,313 shares of its common stock related to the vested portion of the restricted stock unit award (see Note 7).

On February 13, 2019, the Company’s Compensation Committee approved the issuance of 76,112 restricted stock unit awards, in the aggregate, to executives which vests over a four-year period on a quarterly basis beginning on the February 13, 2019.

On February 13, 2019, the Company’s Compensation Committee approved the issuance of 672,144 options to employees which vest over a three-year period on a quarterly basis to purchase shares of the Company’s common stock at $4.32, the closing share price of the Company’s common stock on the Nasdaq Capital Market on February 13, 2019.

On February 13, 2019, the Company’s Compensation Committee approved the issuance of 165,000 options to members of the Board of Directors which vest over a two-year period on an annual basis to purchase shares of the Company’s common stock at $4.32, the closing share price of the Company’s common stock on the Nasdaq Capital Market on February 13, 2019.

On March 20, 2019 the Company’s Board of Directors approved the issuance of warrants to two consultants which vests immediately to purchase 80,000 shares, in the aggregate, of the Company’s common stock at an exercise price of $5 per share.

On March 26, 2019, the Company entered into an amended and restated employment agreement with Andrew Taylor, the Company’s Chief Financial Officer (see Note 7).